ZipRecruiter, Inc. Q1 FY2026 earnings call

• Stabilization in business and accelerating innovation in marketplace are encouraging. • Focus on driving more meaningful conversations between employers and job seekers to outperform broader hiring category long term. • AI permeating every department, driving efficiencies and accelerating roadmap. • Next generation AI engine increased applications by 37% for exposed job seekers, expect all job seekers on NextGen search engine by end of Q2. • Features like Zip Intro, redesigned resume database, acquisition and deployment of Break Room contributing to strategy working as seen in job seeker reviews showing more interviews and phone calls. • Team did extraordinary job finding high roi marketing opportunities in sales and marketing this quarter leading to EBITDA margin above expectations and guidance.

Quarterly paid employers finished the first quarter with over 63,000, flat year-over-year and up 7% sequentially. Revenue per paid employer was $1,698, down 2% year over year and 10% sequentially. Net loss in Q1 was $4.7 million. Adjusted EBITDA in Q1 was $9.7 million (9% margin, ahead of guidance range). Cash, cash equivalents, and marketable securities totaled $393.5 million as of March 31st. Q2 revenue guidance is $112 million midpoint (flat year over year, 4% quarter over quarter). Q2 adjusted EBITDA guidance is $13 million midpoint (12% margin). 2026 expected flat year-over-year revenue (5 percentage point improvement over 2025 decline) and adjusted EBITDA margins to expand from 9% in 2025 to 14% in 2026 (5 percentage point expansion). Enterprise segment performance: performance marketing revenue up 5% year over year, 24% of revenue this quarter (doubled from Q1 2019's 12% of revenue).

• Q2 revenue guidance: $112 million midpoint (flat year over year, 4% quarter over quarter). • Q2 adjusted EBITDA guidance: $13 million midpoint (12% margin). • 2026 expected: flat year-over-year revenue (5 percentage point improvement over 2025 decline) and adjusted EBITDA margins to expand from 9% in 2025 to 14% in 2026 (5 percentage point expansion).

Q: Talk about differences between SMB and enterprise segments and how behavior might change in 2026.

A: Enterprise mainly comprises performance marketing revenue up 5% year over year, 24% of revenue this quarter (doubled from Q1 2019), expect to continue expanding. Customer base from both segments consistent with subdued but stable macro environment.

Q: Talk about Zip app for ChatGPT and potential integrations.

A: New app went live on ChatGPT, LLM still a tiny contributor to traffic mix but good to be there at beginning.

Q: Upcoming rollout of next generation AI engine and market share driver.

A: Next generation search engine increased applications by 37% for exposed job seekers, expect all job seekers on it by end of Q2.

Q: Dynamic of productivity benefits vs rising token costs from GenAI tools and headcount needs.

A: AI permeating every department, driving efficiencies and accelerating roadmap, not a cost-saving opportunity but an acceleration mechanism.

Q: Margin upside and what drove it.

A: EBITDA margins above expectations and guidance due to driving efficiency across G&A, sales and marketing, R&D, and team finding high roi marketing opportunities in sales and marketing.